Lee, what happens in my opinion is that customers buying their first month get a lot of value (the entire site) while the following months they get only the updates, specially if the site uses no drm so that the customer already downloaded all the stuff of his interest.

That's the basis of charging a lower price in the following months.

Another thing that seem to work very well (but I don't have the option in Verotel) is offering a discount in the exact moment the customer is canceling. Sean Cody, for instance does it. When you cancel, they offer you to stay for around 13 bucks a month.

From what I've heard, results are pretty good. And sounds quite fair since, again, what you're selling in these cases is just the updates of that given month.